Mumbai: Coimbatore-based Pricol Ltd's plan to spin off its driver information and connected vehicle solutions (DICVS) business has drawn interest from global private equity funds, underscoring the growing appeal of India's automotive electronics sector.
US-headquartered Advent International and Sweden-based EQT are among the PE players evaluating an investment in the demerged business of the listed firm, according to three people familiar with the matter.
“The talks are still in an early stage, and the promoters will not dilute any stake. The potential investment will go towards the company’s expansion plans, which is currently being funded through internal accruals,” said the first person cited above.
“The transaction is currently undergoing due diligence. The potential capital raise could go towards the company's inorganic expansion plans,” said a second person, adding that the deal could value it at around ₹5,000 crore.
Veda Capital Advisors is advising Pricol’s promoters on the transaction, the third person added. The people quoted above spoke on the condition of anonymity.
Post the demerger, the promoters own 38.51% in the entity while the remaining is held by public shareholders, according to filings made to the exchanges on 27 June. The turnover of the company's DICVS business was at ₹2,424.63 crore for the financial year 2026, representing 61.17% of the company's consolidated turnover for the year.
“We want to clarify that the Board of Pricol Ltd approved the demerger of its DICVS business on 27 June 2026, and the approval is currently pending from the stock exchanges and other authorities. We want to state that the information regarding the fundraise is speculative in nature,” a spokesperson for Pricol said.
EQT and Advent declined to comment on the matter, while Veda did not respond to Mint’s requests for comment until press time.
Pricol went public in the mid-1990s as Premier Instruments and Controls Ltd and was rebranded to its current name in 2004. This year, its shares have risen nearly 12% to ₹739.50 apiece as of Friday's close on the National Stock Exchange.
Its filings in June showed that the company's board had approved the demerger of the DICVS entity, which will now be called Pricol Autotech Ltd. The move is expected to enable the two entities to concentrate on their respective core activities, business priorities and commercial objectives, the company said in an exchange filing.
The demerger of the DICVS Business is a strategic decision to create a simpler, sharper and more agile corporate entity to meet the fast-changing needs and technologies related to this business and its dynamic market realities, Pricol said, adding that it will reduce operational complexity and enable faster decision-making and streamlining operations.
In its filings, the company said each business will have independent and dedicated management teams, enabling clear market access and a clean operating model, allowing them to better leverage growth opportunities in domestic and international markets.
Pricol’s DICVS business focuses on smart mobility and integrated electronic solutions, offering products such as driver information systems (including connected, electronic, mechanical, and electro-mechanical instrument clusters), integrated infotainment systems, advanced e-cockpit solutions, and connectivity solutions such as telematics, battery management systems, and a few sensors.
These solutions cater to a wide range of vehicle segments, including two- three -wheelers, passenger vehicles, commercial vehicles, off-highway vehicles, and tractors.
Founded in 1975 by Vijay Mohan, Pricol is an automotive technology and precision engineering products and solutions company. With 15 manufacturing plants across the country, it services automotive original equipment manufacturers in India and overseas.
Rising interest
India's family-owned auto and industrial companies are increasingly attracting private equity interest. On Friday, India Resurgence Fund, a joint venture between Piramal Finance Ltd and Bain Capital, acquired a majority stake in Fine Edge Engineering Pvt. Ltd, which houses the iron casting and machining business of Ashok Iron Works Group, in a ₹2,000 crore deal.
Last year, global private equity firm Carlyle built a diversified auto platform by acquiring a controlling stake in Highway Industries and Roop Automotives, while Bain Capital bought a significant minority stake in Dhoot Transmissions, which is headed to the public markets next week. Bain also invested in RSB Transmissions, a global manufacturer of automotive, construction, and off highway equipment systems and aggregates, in 2024.
In FY25, India’s auto component industry was valued at about $80.2 billion, driven by rapid scale backed by strong domestic vehicle production and increasing integration into global supply chains, according to a report by Invest India, a non-profit entity under the commerce and industry ministry.
The country is also emerging as a global hub for auto component sourcing. The industry exports over 28% of its production annually with India's auto component export market expected to reach $100 billion by 2026.